# AFFARS MP5317.5

#### Mandatory Procedure

MP5317.5

### Interagency Acquisitions under the Economy Act

May 2007

MP5317.500 Scope of Subpart

(a) The Economy Act also applies for direct acquisitions by Air Force contracting officers ordering from non-DOD contracts when no other specific statute authorizes the order. Before citing the Economy Act, the contracting officer (direct acquisitions) or requiring official (assisted acquisitions) will call the assisting agency to determine whether the Economy Act or a specific authority applies. The Economy Act authority is the least preferred authority as it applies only in the absence of a more specific interagency acquisition authority. Economy Act MIPRs should be the exception, not the rule, because Federal agencies that offer procurement services generally have a specific authority to assist other agencies. When the servicing agency has a specific statutory authority, follow AFFARS 5317.78.

(b) Coordinated Acquisitions prescribed in DFARS 208.70 and Project Orders (41 U.S.C. 23) are examples of orders that do not fall under the Economy Act. Project orders are authorized for use when one Government agency wishes to procure a supply or service from another Government agency. Volume 11A, Chapter 2 of Department of Defense (DOD) 7000.14-R, governs the use of project orders within the DOD. There are several conditions for use of the project order, including the requirements that the servicing agency must be capable, be authorized, and produce the item or perform the service in-house. Only an incidental portion of a project order may be contracted out by the servicing agency.

(c) Contracting Review for orders placed using a DD Form 448 (MIPR): Air Force activities usually obtain supplies/services under the authority of the Economy Act using a DD Form 448 (MIPR) to identify and fund the requirement. The supporting contracting office will review Economy Act MIPRs for compliance when received in ABSS. Contracting offices will not accept or review manually created MIPRs.

(d) The following procedures should be considered when orders are placed with the Air Force as a servicing agency under the Economy Act:

(1) The Air Force is not required to accept the requesting agency’s order, if accepting the order will prevent the Air Force from fulfilling its mission or the requesting agency fails to provide appropriate supporting information, funding, and evidence of an appropriate level of requesting agency approval;

(2) The Air Force should process the order in accordance with normal internal policies and procedures for similar contract actions. This includes complying with the Competition in Contracting Act;

(3) The Air Force contracting officer should execute and issue all Determination and Findings (D&Fs) or Justification & Approvals (J&As) required by Air Force regulations to place the order on contract, just as if the requirement was generated by an Air Force activity; and

(4) Before allowing a non-sponsoring agency to use a Federally Funded Research and Development Center (FFRDC), the Air Force should ensure that the work falls within the purpose, mission, general scope of effort, or special competency of the FFRDC. (See FAR 17.504(e) and FAR 35.017; also see FAR 6.302 for procedures to follow when using other than full and open competition.) If the order does not conform to these requirements, the Air Force may not place the order with the FFRDC. The order also may not be placed with the FFRDC if the sponsoring agreement does not permit work from other than the sponsoring agency.

MP5317.503 Determinations and Findings Requirements.

(e) A D&F is always required for Economy Act MIPRs going outside of the DOD. In accordance with DoDI 4000.19, Inter-service and Intra-governmental Support, paragraph 4.4, the head of the major organizational unit ordering the support must approve D&Fs for support from non-DoD agencies. This authority may be delegated, although designees must be Senior Executive Service (SES) or General Officers. If the servicing agency is not covered by the Federal Acquisition Regulation, approval of the D & F may not be delegated below the Air Force Senior Procurement Executive, SAF/AQ.

DETERMINATION AND FINDING
on
INTERAGENCY ACQUISITION UNDER THE ECONOMY ACT

MIPR or Purchase Request #______________________________

1. I have reviewed the requirement for (insert description of supply or service to be procured) that (insert Air Force requiring activity) intends to place with (insert agency) as an order under the Economy Act. My review produced the following findings:

(a) The servicing agency has confirmed it does not have a specific statutory authority to fill this request. The servicing agency has agreed to accept the request under the authority of the Economy Act;

(b) The supplies or services cannot be obtained as conveniently or economically by contracting directly with a private source;

(c) The action does not conflict with any other agency's authority or responsibility (see FAR Part 8);

(To show which circumstances apply, insert at least one of the three statements below for Economy Act orders that require contract action by the servicing agency.)

(d) The acquisition will appropriately be made under an existing contract of the servicing agency, entered into before placement of the order, to meet the requirements of the servicing agency for the same or similar supplies or services;

(d) The servicing agency has capabilities or expertise to enter into a contract for such supplies or services which is not available within the requesting agency;

(d) The servicing agency is specifically required by law or regulation to purchase such supplies or services on behalf of other agencies.

(Insert the following if the work will be performed by a Federally Funded Research and Development Center)

(e) The work will be performed by a Federally Funded Research and Development Center (FFRDC). Performance by the FFRDC will not place the servicing agency and the FFRDC in direct competition with private sources;

(Insert the following if the work was previously performed by Government personnel and will now be performed by a contractor under a servicing agency’s contract, or if the work was previously performed under a contract and will now be performed in house by the assisting agency. )

(f) The requiring activity has complied with the requirements of FAR 7.3, Contractor Versus Government Performance.

2. Given the findings outlined above, I hereby determine that it is in the best interest of the Government to place an order for (insert requirement) with (insert agency) under the authority of the Economy Act.

__________________________________
Requiring Activity General Officer/SES
Signature Block